What principle does the Hong Kong Special Administrative Region follow when creating its budget?

The principle that the Hong Kong Special Administrative Region follows when creating its budget is centered around keeping expenditure within revenue limits. This approach is vital for maintaining fiscal prudence and stability within the region's economy.

By adhering to this principle, the Hong Kong government ensures that its expenditures do not exceed the revenue it generates, which is fundamental to safeguarding financial health. This practice promotes responsible budget management, avoiding excessive public debt and ensuring that the government can fulfill its obligations without placing a financial burden on future generations. This principle is a cornerstone of Hong Kong's overall economic strategy, allowing for sustainable growth while maintaining a balanced budget.

Other options, such as achieving surpluses or controlling inflation, could be outcomes of maintaining a budget within revenue limits, but they are not the core guiding principle for budget creation. Increasing taxes does not align with the ethos of maintaining financial stability and is typically avoided unless necessary for exceptional circumstances. The focus on staying within revenue limits reflects a disciplined and conservative financial management strategy that is historically characteristic of Hong Kong's governance.